Converting dollars to euros
 

I am leaving for Italy in a few days and with the dollar dropping in value, am I better to get Euros at our bank at home or pull the money from the ATM machines once in Italy? My husband and I are having a debate over this, since our banks at home are telling him that he will get the same rate whether getting the money before we leave or in Italy. In fact we will save the 3% that our bank charges from pulling cash from the foreign ATM machines. I was always under the opinion that it's best to get money once in Italy.
We are thinking of taking out money before hand because many of the B&B's that we are staying at require payment in Euros and not charge cards. Years ago we were only able to pull 300 Euros out a day from the machines, perhaps that has changed. I would appreciate any advise you can give. Thank-you

What bank are you with, and what are their charges? Do they charge per transaction?

What's your bank daily limit? Can you up your limit? My bank is $500 per day. My wife and I both have debit cards with different account #'s tied to the same checking account, so our daily limit combined is $1,000. So, that's a little over 700 Euro per day.

What's your bank's conversion fees. My bank charges nothing, but some banks charge up to 3% or more.

I'm think with the conversion fees, getting Euro ahead of time will cost you more than you could if you used an Italian Bank ATM. I think you have to check all the above factors to find out which is best for you. ((b))

&quot;<i>our banks at home are telling him that he will get the same rate whether getting the money before we leave or in Italy.</i>&quot;

Sorry - but if you believe that, your bank will then offer to sell you a very nice bridge in Brooklyn.

It is simply not true. Did you ask them what rate they are charging?? Your rate out of an ATM will amost certainly be better. Plus you'd have the security/safety issues w/ carrying all that cash from home.

Well, BoA &quot;gives&quot; an exchange rate of 1.47:1 as of yesterday. The official rate is 1.40:1.

I did a euro transaction with Paypal on Wednesday and got 1.40:1

dave

Thanks for the info. We are using Citibank and they add a 3% charge at the ATM machines if you do not pull from their bank machines. Yes, you pay each time you make a transaction so you take out plenty. Depending on what city you are at, Citibanks are not everywhere. Doesn't pay to waste 40 minutes to find a Citibank to get cash.

Jam,

Citibank is charging 3%, then you must have a Mastercard or Visa branded ATM card. If you have a plain vanilla ATM card, I doubt the foreign transaction percentage fee would apply (more likely a $4 or 5 per transaction fee would apply). I'd check the information you got with the bank's headquarters. Also, check the daily withdrawal limit (it will be in dollars, not Euros).

Banks are trying all manner of semi-fraud to get extra money from users. Most credit cards are adding 3-4% for overseas transactions--this is added by the Bank; Visa and Mastercard International add only about 1% for overseas use. But not all banks do this--Capital One, USAA Savings Bank, and some credit unions don't add the 3-4%.

But the base rate of exchange on ATMs is always better in Europe than it would be for you got get Euros in the US before you leave...either thru TravelEx, Amex, or you bank. The best advice I can give is to use your ATM once you get to Europe.

Like others on this forum, I simply do not believe the bank staff is correct when they claim you'll do better at home than in Europe. That's almost never true.

Best of luck figuring this all out!

Dave

Jam,
Your bank lied to you . As of ten minutes ago the interbank rate was $1.409 for a euro. Citibank quoted $1.490 for a euro. Using an ATM would be cheaper. Have your bank raise your daily limit.
Henry

I went to Citibank today and they wanted 1.49 plus $5 if I wanted less than 1000 euros

Jam, I worked in banking for 11 years and believe me, the people at the bank have NO IDEA of what the banks overseas are charging for currency. And don't ask a travel agent either, they are even more clueless.

Use your ATM card.

This is all totally true. I HAD to get Euro in the US this week, and payed much more than I would have in Italy from the ATM. 1.49 on Friday, plus $15.00 to have the money sent to my bank. Fortunately, 3 other people split the $15.00 charge with me, but the rate was still horrible. I called every bank, by the way.

Right, your local US bank personnel are clueless - they will give you a bad exchange rate and may well not know it. My Bank recently went to 2% for making ATM transactions outside the US. When I mentioned this to two friends yesterday, they said their bank and some others now charge 3%. They should know as the just returned from their monthly European work trip.

Banks in Europe have exchanged a lot of cash for many years. The arrival of the Euro only reduced the lines. They still charge about 1% to turn your currency into Euro; and my money belt is quite comfortable. Although I will pay for the first week's rent with last year's Euro bought for $1.26. I don't think at $1.40+ I'll bring back more that 50 for next year, although I may regret it later. Few if any other Fodorites seem to carry and change cash the way I do.

Thank-you so much for all your information. It is settled we will use the ATM's in Italy to get our Euros.

I used to run 'retail exchange offices' 15 years or so ago.

I would suggest take cash with you and change it into euros at local exchange offices. The best rates are usually offered by 'off the beaten track' exchange offices. They attract people to them by offering unbeatable rates, probably 1% off the 'money market or spot' rate.

This will beat cards and banks by miles.

A tip though: ask exactly what you are getting when exchanging before hand. The rate might be excellent then commission charged OR they advertise no commission but actually get a terrible rate.

hope this helps

totp99, I have never found an exchange office that can beat or even match the rate I get by my ATM card. My credit union ATM charges only 1% markup, with a $1 fee. If I use my BofA ATM card I pay 1% markup and no ATM fee if I use a partner bank's ATM. Even off the beaten track I've never found an exchange facility that comes close to that. Furthermore the ATMs are available 24/7 and they are very easy to find.

Whatever you choose, I would never rely on only one method of getting cash in Europe.

I'm one of those people who likes to have some in advance, so I suck it up and purchase from my home bank foreign exchange desk, a few hundred, for the comfort of arriving with something in my wallet.

Then I use the ATM machines.

I also carry USD or travelers checks as a back up.

And a couple credit cards.

While it is certainly true that the ATM is the best way to go, I would never want to be standing in Italy, with one ATM card that for some reasons decides not to work, and no other funds or means of getting them!

totp99: What a load of hogwash. Sorry, but what <i>may</i> have been true 15 years ago - and especially in some eastern European countries - is not valid today.

Thank you janis, I can't believe I overlooked the part about 15 years ago. At that time, the exchange office off the beaten track might have been a good idea, but the world has changed a lot since then and these days the ATM is the way to go.

As suze says, a back up is always good. You probably won't need it, but bringing a second ATM card and/or cash/TC's is a great idea.

totp99, it is information like yours -- totally wrong and way out of date -- that causes a lot of confusion on this subject. Until you check out your facts, you would frankly do everyone a service by NOT quoting such wrong information.

Incidentally when you say that some off track places may offer you 1% above rates -- good -- that's what nearly all banks do with their own ATM cards. But you'll do a lot of searching to find such a deal from an exchange office.

I have not traveled to Europe since before the Euro. I used to use a credit card for most purchases. Is this still a good idea? Thanks.

Bottom line. Currency exchange costs are minor expenses. Hotels are raising their prices beyond any expectation. Eastern Europeans are flooding into Western Europe. They are 'soaking up' low cost housing. Tourist now have limited accommodations available. An 'auction' is going on. Quit worrying about money costs. Concern yourself with hotels and food! What is the difference if a room is $200 a night or $250 a night? One week...$350. Forget the ATM cost...concentrate on the real costs.

rfc- Sure, credit cards are fine. Different ones have different foreign transactions fees and exchange rates. You'll want to specifically check the ones you use.

Jam, where will you be in Italy? I can tell you off the bat that, regardless of what the website tells you, Rome does not have a Citibank ATM, however, Milan does, and it's right off Galleria Vittorio (entering through the Duomo entrance, walk until you see a bunch of people spinning around {it's right by the TIM store}, make a left until you walk out of the Gallery, and then look right).

Citibank will charge you 3% regardless of whether you have the Mastercard/Visa logo on your ATM card. Citibank charges the 3% to cover &quot;mandatory fees.&quot; B.S. Mastercard and Visa charge 1% for their fees.

If you travel enough though, I would recommend you look at other banks. In NYC, for now, Commerce does not charge you anything extra in terms of foreign fees if you withdraw from your checking account.

And get enough &euro;s on your way home for your next trip abroad!

jam
we just got back from florence and since we forgot to take our debit cards -duh
we used our AMEX. we think they charge a one time transaction fee but nothing else..

Do you mean you used your AMEX as a credit card, or to withdraw money from an ATM?

bookmarking

jamieenid, if you used AMEX to get cash, you might be in for an ugly surprise when your bill arrives.

Gee you have so much info already I don't know if this is helpful, but I just got back from Florence and Rome. What worked for me was this. I used my credit cards for ALL hotel charges. Capital One chraged the exchange rate 1.387 (9-14) and added 1% which is a good rate. My WF ATM charged $5 ATM Fee and converted at 1.387 + 1%.
I paid $286.32 for 200 Euro. Don't panic on the exchange. Overall the percentage increase is NOT as bad as it looks in the short term. If oyu planned your trp with a budget of X$ then an increase of a couple of percentage points isn;t that bad to absorb. It's not like your buying a car there. Most improtantly ENJOY yoursef. If you need to spend a little more then do so, but don't go with a budget so tight that you don't reay enjoy things (e.g.&quot;Gee If have this for lunch I can't have that for diner..etc.&quot;)

Jan,
If you are going to arrive in Rome and take the train to Termini, there is a change booth one block away that will give you the interbank rate. I dont know how they make money at it, but they've been doing it for years.

Walk out of termini on the via Marsala side, cross the street and turn left. Walk one block to via Vicenza. On the corner is a money exchange. They charge no commission and give a rate as good as you'll get from an ATM.

I just got back from a sit-down meeting at Citibank here in NYC, where they said if I use my Citibank &quot;gold&quot; (I call it orange) card at a Citibank branch to get cash in Italy, they won't charge the 3%. Then I called the Citibank Via Leone X branch in Florence, and they told me the same time, as long as I use my debit card. There is still the conversion rate. They have a window open for &quot;cash withdrawals&quot; until 7 pm. I'm going to try this, but want to know...does anyone think it's a bad idea?

Correction: Those with a CItibank gold (orange) card will pay 1% at any atm, and those with a blue card pay 3% at atms.

Alloro, thanks for your information. I immediately called Citibank and to make matters more confusing the conversion rate between 1 and 3% is not always based on your color code of debit card. My husband and I are on the same checking account and he has an orange and I a blue card. I am the primary person on the account. After reading your post I called Citibank and was told that it depends on the type of account you have established. The CS agent looked through our account history and told me that I will be charged a 1% conversion rate, a relief because I was told by someone else at the bank that I would be charge 3%. Mind you the first person I talked to told me the same information you gave gold card 1% blue card 3%. I had to do further checking and probably won't know till I come back and look at my statements to see what I really got charged. Bottom line, each individual has to call their bank to find out, there's no standard rule of thumb. I thank-you for posting your findings.

lol, jam-
I am still recovering from the afternoon I walked half way across Rome to get to the Citibank branch behind the American Embassy, only to find them closed &quot;for a long lunch&quot;! Arggh! The guy on the phone at the FLorence Citibank was properly flirty though, so that made the conversation fun! It would be funny to compare Citibanks in Italy to CItibanks in the US. Sort of like comparing McDonalds!

PM - what kind of ugly surprise?
We looked at the site and it said that we'd only be charged a transaction fee but nothing else.
Calling rite now !!!
yikes.

neo patrick.. i used the AMEX to withdraw from an ATM

You folks who think asking customer service will help at all, just haven't been around the block enough times. I have found (and many threads on here indicate most financial inst's are equally bad) that they almost NEVER know what they are talking about. Whether it's international banking, ATM fees/rates, partner banks, or anything else. They will tell you just about anything, and if you call back in 10 mins and speak to a different CS agent - you'll get a different answer. They just don't know which end is up.

yes, janusj, but, I have been traveling to Italy once or twice a year for the past 7 years, and stll I find it important to make these calls to my bank and credits card companies before each and every trip.

Yes, there are different answers each time, which is frustrating. And it goes without saying that even with careful research, there can be surprises at the end of the trip.

Do you have a good practical suggestion of a better way to work with the flawed system that's in place? My only strategy has been to travel with a variety of optional ways to get cash, as best I can. If you know of a good solution, please let us know!

Since you say you already know they don't give you correct info - why do you keep bothering w/ it?

I merely call my bank/credit union/cc issuers to tell them my itinerary (so they won't block the cards) and don't <u>ask</u> them anything. I know more what my bank charges will be than just about any CS agent I've ever spoken w/.

This is not the first time that people have discussed the question of getting insufficient or inaccurate information from banks in the US about their charges. It does not surprise me that individual customer service staff might not know about the less often invoked services, but it does surprise me that using ATMs in Europe falls into that category.

I'm no fan of Irish banks, but if I want information about the charges for various types of transaction, I can phone and they will send me out a leaflet telling me what's what. That way, staff don't have to memorise things, and I know where I stand.

What happens in the US if you are given information on the phone or across the counter and you ask to have it confirmed in writing?

Every month I get a detailed statement from both American Express and Visa. These statements spell out in great detail exactly what their methods, costs and such are. They also advise that if I am unhappy with their methods how I can terminate my relationship with them. As a teacher I am aware that many people simply cannot comprehend these messages. Anecdotal information from Fodor's is not shall we say, a legal foot print. Why not query your lawyer with your questions? A second choice; chances are that if you phrase your questions correctly and pose them to your credit or debit card source you will get a correct answer. Good luck..

GSteed, I think you are being naive in your reaction to getting answers from &quot;banks&quot;. It is not so much a matter of phrasing questions correctly to get a proper answer. The bottom line is that many bank employees including those on the national telephone lines simply DO NOT KNOW. I have been told such absurd things as &quot;if you put your American ATM card in an ATM machine in Europe you will get US dollars out&quot;. And &quot;yes, we can provide you with foreign currency before you go and there is no charge&quot;. &quot;Oh, at what rate of exchange?&quot; &quot;The same as you'd be getting over there -- the actual current bank rate&quot;. WRONG!

And while you may talk all your want about all that fine print on the statements -- no where on mine does it ever give an actual final percentage amount for the currency conversion charge. No where! It talks about how the charges are figured, but there is no way to tell from those statements whether it might end up being one, two, or three percent above current bank rates.

And your suggestion to query an attorney to get the answers to your questions is patronizing at best.